Build your legacy alongside the heir to the Wrigley Chewing Gum fortune…
I’ve said it before, and I’ll say it again.
Today’s number one investment opportunity is this: top-performing multistate operators (MSOs) selling cannabis to Americans.
After all, MSOs form the very heart of “The Great American Cannabis Story” – a tale of hyper-growth that will take the United States cannabis market from $20 billion to well over $100 billion in just a few short years.
And William “Beau” Wrigley IV, the billionaire heir to the Wrigley Company fortune, would agree.
In 2008, Beau, who had taken over as CEO in 1999, sold Wrigley to Mars Inc. for $23 billion.
That sale bagged a few billion dollars for Beau, but the windfall left him with a monumental challenge – how to expand upon the legacy his forebears built.
It requires phenomenal effort to make a meaningful mark on a multibillion-dollar portfolio. A viable investment must not only provide massive return potential, but it requires a market opportunity big enough to justify dropping tens of millions of dollars into a company.
Even turning $1 million into $20 million barely moves the needle on a $3 billion estate.
And no single sector provides more market potential than the road to and through the future $100 billion U.S. cannabis market.
Beau also saw the promise of The Great American Cannabis Story.
He recognized it as the best way to create more wealth than he or his forbears could have ever built with Wrigley Company.
So, in 2018, he dropped $65 million to control 32.5% of a leading privately held MSO with a $200 million valuation.
At the Heart of The Great American Cannabis Story
The MSO he took over in 2018 was Florida-based Surterra Holdings Inc., which he renamed Parallel.
Parallel holds the number two spot in Florida, right behind Trulieve Cannabis Corp. (OTC: TCNNF), and currently operates 42 dispensaries across 5 states – including valuable cannabis markets like Pennsylvania, Nevada, and Massachusetts.
Plus, the $447 million in revenue and $100 million in EBITDA – which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a measure of operating profits – it will likely generate in 2021 ranks it near the top of the heap of leading MSOs. That also puts it at the heart of The Great American Cannabis Story, which is right where you want to be.
And Parallel’s new deal with a $245 million special-purpose acquisition company (SPAC) – or what we like to call Cannabis Venture Trust – gives you the perfect opportunity to be there.
On February 22, Ceres Acquisition Corp. (OTC: CERAF) and Parallel agreed to merge.
This deal puts a $1.9 billion valuation on Parallel. And between the $120 million in cash that Ceres raised through its IPO and $225 million it raised through a PIPE offering (more on that in just a moment), the company that emerges from this deal will have over $430 million in cash.
That cash hoard puts it in a perfect position to expand through acquisition and solidify its position at the top of the heap.
The merger is expected to close this summer, and once it does, Parallel will be a publicly-traded company.
But you don’t have to wait until the deal closes this summer to get in on all the upside Parallel can deliver.
I’ll tell you how to can claim your stake today.
But first, I want to tell you a little about how SPACs work and why the PIPE deal that went along with the merger announcement gives me so much confidence in this deal.
What’s Special About SPACs
As a SPAC, Ceres Acquisition Corp. is a publicly-traded company. It went public through an IPO a year ago, on March 3, 2020, and raised $120 million in the process.
The “S” in SPAC stands for “special,” and what makes a SPAC special is the fact that it can raise money from the public without having any actual business to run. When an investor buys shares in a SPAC, they are essentially giving the SPAC management team a blank check to go out and find a private company to take public.
Now, with a SPAC, not only do you have to wait for a deal to be announced before you have any idea what business the SPAC bought, but shareholders can also redeem their shares before the deal closes.
This option creates an out for shareholders – one that allows them to get out at the same price at which the SPAC offered shares through its IPO.
And that’s what makes the PIPE deal so important.
PIPE stands for Private Investment in a Public Entity. The $225 million it raised was a private offering, so the public company Ceres raised money privately. And the money it raised alongside announcing the deal came from Big Money family offices and institutional investors.
Those investors don’t have the same option to redeem their shares. That means they believe in the deal, and the money they invested virtually guarantees it will go through.
That’s a huge vote of confidence. And it’s why I recommend you buy shares in Ceres Acquisition Corp. trading under the ticker CERAF today.
The Great American Cannabis Story is one you want to be a part of.
Alongside Parallel, I’ve identified several more cannabis SPACs with just as much potential as Ceres. You can find out who they are by clicking here.
Executive Director, National Institute for Cannabis Investors
2 responses to “This $1.9 Billion Deal Puts You at the Heart of The Great American Cannabis Story”
March 04 2021